What conditions must be met for a release or waiver of rights to be valid for a City Wide franchise in Washington?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind he franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect an d where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
In addition, any such release or waiver executed in connec
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents, which aims to obligate a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act, is considered void unless specific conditions are met.
The waiver is only valid if it is executed as part of a negotiated settlement after the franchise agreement has already taken effect. Furthermore, both parties, City Wide and the franchisee, must be represented by independent legal counsel during these negotiations. This requirement ensures that the franchisee is fully aware of their rights and the implications of waiving them.
This provision is in accordance with RCW 19.100.220(2), a section of the Washington Franchise Investment Protection Act. This statute aims to protect franchisees by ensuring they are not pressured into relinquishing their rights without proper legal representation and a clear understanding of the terms.